2012-11-21
2012-11-29
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English 118

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on the economy. the washington post writes that the white house is ratcheting up pressure to avoid the fiscal cliff. on c-span tonight, we will bring you some of the house and senate debate from august of 2011, when congress passed the budget control act that triggered cuts to take effect on january 1. we will also hear from president obama, who signed the deficit reduction measure into law, part of the deal to raise the debt ceiling. first, senate majority leader harry reid and republican majority leader mitch mcconnell will talk on the senate floor about the january fiscal deadline. >> since our country voted to return president obama to the white house, i have spoken often about compromise. i remain optimistic that, when it comes to our economy, when it comes to protecting middle-class families from a whopping tax hike, republicans and democrats will be able to find common ground. president dwight eisenhower, a republican, once said, "people talk about the middle of the road as though it were unacceptable. there have to be compromises. the middle of the road is all usable space." so said w

've spent a good deal of your career working on, mr. hall, has been the improvement of the american economy. and tonight i'd like to join a couple of my colleagues on the democratic side to talk about the economy and specifically to talk about jobs and the things that we can do here in the a winning days of this congress -- wanning days of this congress to create some job opportunities. we've got some very heavy lifting here in congress in the next month and a half. everybody wants to talk about the fiscal cliff, some talk about austerity, bomb, others talk about what needs to be done to lift the debt limit. and all of these issues are before us. tax increases are not. but underlying all of that, foundational to all of that, is putting america back to work. getting americans back into their jobs. if we do that we will clearly increase employment and when you increase employment you always increase tax revenue to the federal government, to state governments and local governments. so our principle task as i see it and i think i'm joined by many of my colleagues, both democratic and republican

, investors in the financial markets and the real economy, you need sustainability and credibility. the problem with the european union for the time being is that decisionmaking is not sustainable. the united states has a common economic area with a common currency. one central bank, one parliament, and one government. the european union has an economic area with one currency, one central bank, and 17 governments in the eurozone. how the fine trust when you have every day after the decision making, another government -- how you can find an investor going to greece, today you invest in euros. tomorrow, the currency of greece, nobody knows. what kind of investment will go to greece. the biggest problem is not to fill the gap in the public coffers of greece. my eyes, it is a credit crunch in some of the countries. i met the chairman of the greek chamber of commerce when i was there and he'd tell me we have about 300 small and middle sized companies. ferry transport is a very important element of the greek economy. in the health-care system, whatever. most of the jobs are created in sm

in the southern city of kochin represents the booming economy. and with growth projections here as high as 7% for the year, the expanding indian market for goal could push prices past $2500 an ounce. "buy it, keep it, buy 24-carat gold, put it in a locker, and when you need money, turn around and sell it and make good money on it." > > and come to umreth to do it. "yes, come to my shop!" reporting from india, paul eggers, first business news. the indian government tightly regulates the gold market by testing jewelery for quality. chokesee believes this is a positive, because it helps protect customers from low- quality pieces. an overwhelming number of parents in the u.s. believe their children are growing up without learning valuable life skills such as how to manage their money. as many as 7 out of 10 parents expect these lessons to be taught in public school. nathaniel and stacey didomenico's young daughter, arianna, is more ahead of the game than she realizes. "we've already started with our daughter. there are things she wants at the store and we explain that it costs money, we have to

to make a decision and then they looked at taxes, the economy, jobs, and they went to the president. >> what is an emerging trend in technology or how people consumer information that will have implications for 2014? the leading edge? >> that is a good question. the prevalence of people getting their information online has exploded. you look as swing voters and how little they are watching tv, we all had three places you got your news from. now they get their nightly news from 15 sources. jon stewart is an important moment from that. if you are a democratic-leaning woman, you love rachel maddow. getting to those people is harder. they are way more online than anyone. you have to go to where they are. campaigns will spend more and more of their money online than ever before. until it reaches parity with television. >> and you think television will still be big in 2016. >> it is going to be the dominant media but online is going to catch up very quickly. i think it already is catching up for young voters who are looking -- >> within a couple cycles? >> no question. i think the next el

is to talk about the economy. but i would say something is. romney only emphasized -- very quickly. we cannot run only on an economic message. we have the full conservatives on social issues, on the national security, and on the economy. spent and aspirational. aspirational a mechanism where you are free to go as far as you want to go and to do what you want to do. and you are right about the hispanic community, especially they are very and trunk -- entrepreneurial. guess what. they start liking free government less. >> unfortunately, we're out of time to want to thank you all for coming today. please join me in thanking our panelists for this terrific presentation. [applause] [inaudible conversations] >> tonight in primetime we get a closer look at the presidential election. we have from president obama's former campaign manager and republican strategist steve smith. that's and university of delaware and starts at 8 p.m. eastern. here on c-span2, author mark friedman talks about how more baby boomers are entering into a second careers. he's the author of the big shi shift. that's also at 8 p

by the federal open market committee to support the economy. in addition, i will discuss important economic challenges our country faces as we close out 2012 and move into 2013, in particular the challenge of putting federal government finances on a sustainable path and the longer run while avoiding actions that would endanger the economic recovery in the near term. the economy is continuing to recover from the financial crisis and recession, but the pace of the recovery has been slower than fomc participants and others had hoped or anticipated when i spoke here last, three years ago. indeed, since the recession trough in 2009, growth in real gdp has averaged only a little more than 2% per year. similarly, the job market has improved over the past three years, but at a slow pace. the unemployment rate, which peaked at 10% in the fall of 2009, has since come down 2%, to just below 8%. this is a welcome decline, but it has taken a long time to achieve the progress, and the unemployment level is still well above its level prior to the onset of the recession and the level that our colleagues an

's entire economy. we can't afford it and we can't afford to leave it intact. so try as they might, remember the last congress republicans passed a lot of bills out of the house of representatives that tore apart obama care. as even the president calls it now. they didn't go anywhere in the senate and meanwhile, alex, after the thanksgiving break, the principles are expected to get back together to begin negotiating in earnest. as you're right the clock is ticking. just a little bit more than one month to go before the nation heads over that fiscal cliff. al alex? >> 38 days and counting. thanks so much. let's go from the white house to the middle east now. palestinians and israelis are keeping a cease-fire alive. but many call the truce extremely fragile. an attempted border breach threatened the calm yesterday. israeli forces shot and killed a palestinian man. he was one of hundreds testing israeli security at the border. nbc's martin fletcher is live for us in tel aviv. good saturday morning to you, martin. can this shooting jeopardize the cease-fire? and then when does the next phase beg

for the economy." ben bernanke didn't endorse any specific tax or spending policies to solve the fiscal cliff, but he urged lawmakers to think creatively. he said an agreement on ways to reduce long-term federal budget deficits could remove road blocks to growth. on the other hand, going over the cliff might mean a recession. on top of that, worries about a deal were already causing trouble. > uncertainty about how the fiscal cliff, the raising of the debt limit, and the longer-term budget situation will be addressed appears already to be affecting private spending and investment decisions, and may be contributing to an increased sense of caution in financial markets. >> susie: wall street and business leaders were pleased that bernanke was talking tough. and they said the fed's role in the fiscal cliff negotiations is to communicate. >> tell the world and the individuals in the political establishment that they have to help get their act together or we have a problem, and that notion of preaching from the pulpit that he has is very fundamental. >> susie: is there another role or more of a ro

't heard before. could christmas actually be bad for the economy? d? on black friday, it doesn't matter, as long as we end up here at 5 a.m., or at homedepot.com, starting thursday. where prices have been cut, chopped, and sanded... on the most powerful tools that cut. ...chop... ...and sand. so we, or somebody on our list, can do the same. more saving. more doing. that's the power of the home depot. the early bird gets a special buy on a ryobi two-piece lithium-ion kit, just $99. >>> it's being called the thanksgiving creep. a record number of stores are getting a jump-start on the holiday shopping season by opening their doors tonight. nbc's kevin tibbles is live in chicago for us. he's getting ready to shop till he drops, always ready to do the deed for work. so, what you got there? how bad is it going to be out there today? >> alex, if you think i'm going to be in a mall today, you've got me confused with the other 83 million kevin tibbless who aren't in the phone book. but it is thanksgiving. happy thanksgiving to everyone. for those of you who do have that sort of deal bug, well,

period of lower rates further into the future we are not saying we expect the economy to remain weak until 2015. rather, we expect, as we indicated in our statement, that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. in other words, we want to be sure that the recovery is established before we begin to normalize policy. we hope that such assurances will reduce uncertainty and increased confidence among households and businesses, thereby providing additional support for economic growth and job creation. the u.s. economy continues to be hampered by the lingering effects of the financial crisis on its productive potential and by a number of headwinds that hindered cyclical adjustment of the economy. the federal reserve is doing its part by providing accommodative monetary policy to promote a stronger economic recovery in the context of price stability. as i said before, while monetary policy can help to support economic recovery, it is by no means a panacea for our economic ills. uncertainties ab

that in itself says that when the economy is contracting, there is a competitive advantage to having an education. >> has always struck me with my students. apple would much rather have students with a liberal arts background than a background in computer science or engineering. they are much more adaptable and capable of change. i am not aware of this study, but during the late 1990s, the business higher education forum conducted a study of ceos and see what they sought from college graduates. while they expected some skills, what they were really after was individuals that were committed to continuing having had capacity to continue to learn. not only that they are adapted to change that they can drive change and adapt to an increasingly diverse world. in that sense, it really kind of defines the important part of a liberal education is a background the background for this. the other thing i would mention we really need a liberal arts training before they enter these programs. so i think it really reinforces that. >> i think you are very bright about the data. particularly over the long-term. a

. >> it is doing it now with china and japan. you have to of the biggest economies in the world in a nightmare situation that raises the fundamental question and up in in this myth that economics draws people together. part of the title today is "mischief or miscalculation?" during the cold war, you could have 17 different spheres of contact with the soviets and it two blew up, you could still have 15 others. there was a lot of heavy investment in figuring out how to court made, communicate, due to escalation and talk if things got bad. in this era, when i look at the amount of time -- the obama administration more so than the bush administration, when officials meet throughout the region, and the discussion attempt to correlate with china, there seems to be a lot of effort to try to coordinate. jim steinberg was the fourth member of this panel, looking at the island dispute and said, they were shocked and surprised by the level of miscommunication, miss assessment, and the dangers of that between china and japan. it raises the question of whether or not -- i agree. i know china wants respect

about how enacting comprehensive immigration reform can help on the jobs and economy issue. simply put, immigration reform would create a fair, humane and effective system that levels the playing field for all workers. right now our immigration system doesn't work for anyone but unscrupulous employers. we need to take the power out of the hands of those who are exploiting our current immigration situation and put it back in the hands of workers and fair and honest employers. if all workers have a legal status, employers can't skirt labor laws said they have to pay fair wages and abide the rules. immigration reform is the right thing to do as well as the economically smart thing to do. children should not have to live in fear of their parents deportation every day of their lives and some of the hardest working and most honorable people in our society should not have to be subject to exploitation and harassment. finally, i would just like to say that i'm truly appreciative of the support we have received from the urban league and other african-american leaders on this issue. i know that

, we will ask a business expert what fewer shoppers means for the overall economy. rick: shifting gears now overseas, the hamas terrorist group is accusing israel of breaking the ceasefire rules agreed to only a couple of days ago, two days after a truce was reached along the israel/gaza border. the shooting death of a palestinian man today could threaten the already-fragile agreement. conor powell is live in jerusalem with the very latest. >> reporter: well, rick, given that the level of trust between israel and hamas is so low, expectations for this ceasefire were even lower. but it appears to have passed its first major hurdle. earlier today several hundred palestinians went to the border between gaza and israel, some reportedly there to check on land across the border in israel, others were, no doubt, hamas sympathizers testing the ceasefire. but as israeli trooped told them to back off from the border area, they refused, and israeli troops opens fire killing one palestinian. both israel and hamas accused the other ofhe ceasefire agreement, but neither side took steps to escal

, we had huge surpluses because of the strong economy over the 1990's and deficit-reduction plans put in place over the 1990's. the government had the choice to spend that on programs, or returned it to tax payers, and the bush administration decided to return the money to taxpayers. over the following year's tax rates were lower. it was renewed in 2010 in a tax deal between president obama and congressional republicans at a time when the economy was weak and the feeling was they could not take an increase in taxes. host: what was the desired effect and did it happen? he called the desired effect was to give people more of their income back, and that happened, as wealthy people got more income back, more moderate income earners got some back. one of the questions is how it effects economic growth, and it is an unresolved area of economic research. did it did help the economy -- did it help the economy? it is hard to say. we had a good economy in the 2000's before the crisis. now we have a huge crisis. on balance, it probably did not help that much. host: can you calculate if jobs were

, it could have serious consequences on the economy. >> i want to ask you both to weigh in on this question. kristen, you do the political angle and neil you give me the nuts and bolts. yesterday john boehner wrote an op-ed calling for the health care law to be part of the negotiations, he wrote in part the president's health care law at the massive, expensive, unworkable program when the national debt exceeds the size of our country's entire economy. we can't afford it, and can't afford to leave it intact. is john boehner right? >> no. look, it's a law that does a lot of things with the health care system. it's not predominantly a fiscal issue, in that that when the government does anything, it affects taxes. if you're the president you have no incentive to allow the health care law to be on the table in these negotiations. maybe on the edges there are a few spending programs you're willing to negotiate over. but in terms of the health insurance mandate and exchanges, all the things in this complicated law that passed two years ago, you're really going to draw the line and say, we're not g

will require to help its economy recover. >> eliot: that is the balancing act that prime minister morsi is trying to effect wait here. in essence for his economy to come back, he knows he needs the united states. he needs peace. a war would be devastating to what long-term he has to care about. is that, in fact, the leverage that secretary of state clinton has with morsi in saying to him you have got to lean on hamas to stop this and somehow we will navigate through this in the coming months but it seems to me that morsi has made himself a central figure in this process. >> well, sure. i suppose the difficulty for president morsi is hamas is the key actor in this equation but obviously there are other groups resident in gaza that perhaps even hamas does not completely control. so when you get to that aspect of assurances, prime minister netanyahu wants a period of calm before he signs a truce. obviously gave that point -- it is very challenging. eliot, the other aspect as your opening clip of hillary clinton underlined is th

a lot of -- >> he's got a cleaner slate than four years ago with an economy. >> start building the sub structure to show actual progress. a debate in the white house is, like, it's a long term thing, health care, for instance, but showing results any time soon to people in need. well, that was the long term game. of course, the stimulus was the short term game, but, still, americans don't feel the effects. some of it is marketing, some of it is real, of a lot of what obama's done. i think the key now is, because of the re-election, he'll actually have time for americans just to go, well, i feel a little better, and it's substantive, it's real. my health insurance -- >> that was true of clinton, and david said in the conversation that clinton adopt seize the reigns of a -- didn't seize the reigns of a second term. >> seized something else instead. [laughter] [applause] >> that was good. >> the whole year before wasting 1997 before the scandal broke will. >> welfare reform -- >> asking dave because we're in biography here. i'm fascinated by them figuring out who they were in childhood. y

. it is is sapping the ability of the american economy to grow and it is topping -- zapping the ability of the average american to rise. until we look at the major core issues that are making the u.s. more attractive to business, we will go back to the fiscal cliff discussion over and over again. unless we can get our economy really moving and growing in the long run, these will just occur over and over again. we identified eight areas, as you mentioned, where we find there is broad consensus where we believe these things would really move the needle in a reasonable time frame, two, three, four years. there is some real bipartisan support. the first is the need of a sustainable budget compromise. that is widely accepted by all. two, easing on highly skilled immigration now. yes, when a broader immigration reform, but this is one of the abilities to really move rapidly to inject skills and to the economy and fill jobs badly need to be filled to sustain our growth. it is not a long-term solution and there, but it is a critical step we can take now that would really move the needle. we hav

back on its feet, it involves finding a way to help greece's economy actually return to growth. while some of the terms of the deals were a little more favorable than many had feared, at the end of the day, you have to find a way to help these economies grow. that probably means pausing some of that austerity. >> susie: you talk about it being a favorable deal, and you picture that other troubled companies in europe are saying, i want a deal just like greece got. what does that mean for the european economic recovery? >> i think it certainly complicates things a little bit. there is clearly an issue of moral hazard. many other countries may look to the deal that greece got and say, hey, maybe i can get a similar-type deal. in the end, when we think about what is plaguing personal europe, a lot of it has to do with austerity which has been forced on the economies, which are really, really depressed, and pushes them deeper into the hole. part of what needs to be done moving forward is pausing some of that austerity. you can't go to a country in a very bad recession, and tell them to inc

cartwright. much larger housing it. one-way ticket about this is that the great growing economy in china per capita carbon emissions levels go up about 100% if they stop at the level of wealthy but hybrid -- out by less than 30%. that's a huge difference. whether or not you live in global warming are worried about the price of gas at the pump, we have a lot to gain by china in the building of rather than a. i think the most important thing for america to do in order to encourage a to have it is to get it some urban policies interpret that means stopping our cities as if they are the ugly stepchildren of america and recognize them for the economic heart line, apart a chance -- the heartland for this country. the american dream can only mean a homeowner in the suburb every means rethinking policies that pay for highways with general tax revenues, driving people to drive longer distances, above all honor city schools which are such critical ingredient for urban success in such a critical problem which despite enormous hard work by people language, mayor menino, like the city council, are so far

all of those. but is black friday still good for our economy? does it help? does it create jobs? will it help the obama administration, recession and the unemployment levels, as easy as it is to talk about the ugly aspects of it, what are the positive aspects if any. shop at local small businesses on friday. why not think about buying american-made products and think about keeping your money in your community by buying locally? we'll get to all of that governor eliot spitzer will be l kaing in host of "viewpoint" here on current tv. likewise, film critic allison bails who i'm a big fan of, and she'll be talking about what are some good films that smart politically progressive minded people can go see, and what are some good movies you can take your family to see or escape from your family with. and scott backman will be on. >> i can't wait for that. >> john: yesterday we had dean on, and they do a show together. and scott takes the position where he is very pro israel but not a huge fan of their government. anthony popus will be calling in, and is wal-mart as

convention and james carville reminded me with all the talk about the economy that we don't live in an economy, we live in a society. i care deeply about the society we are creating and i use the word creating on purpose. today community does not happen organically. you have to be very intentional and deliberate about that, and city council is in the midst of a school reassignment process, i have learned quality is subjective, the definition of that. city council is redistricting. i have learned community is subjective. how neighborhoods are defined. i do believe in investing in infrastructure and all those things that would eradicate or mitigate a brain drain, but ultimately, i believe it doesn't matter if we have more affordable housing or better jobs or better schools. if people don't want to live here. that has everything to do with community and the soul of the city. people want to be a part of a city that is diverse and inclusive and welcoming. neighborhood is about social interaction and that is how we build community. in a city like boston that has 22 distinct neighborhoo

this difficult time we have had with the economy. the richest of the rich will have to pay a little bit more to solve the financial problems we have in this country. [inaudible] >> right after the senate majority leader harry reid spoke, republican leaders held their own briefing and ways to find a deal and criticized leader reid's plan. this is 15 minutes. >> good afternoon, everyone. as we head into the fiscal cliff negotiations, my advice to the president would be -- seems like our friends on the other side are having difficulty turning off the campaign. we need to sit down and work this matter out. i think we have a clear sense and opportunity here at the end of the year to do something important for the country. we all know that the most critical steps to be taken are to save the entitlements, which are on an unsustainable path to bankruptcy. there's no better time to begin to fix that problem than right now. so i would hope our friends on the other side can kind of turn off the campaign and get into a cooperative mode here to reach a conclusion. which leads me to make a further observa

an agreement by year's end. such a situation is feared to trigger a plunge in the economy. panetta warned that defense spending will be subject to drastic cuts if lawmakers failed to reach a consensus. >> the worst thing that could happen from my perspective is that they just kick the can down the road. all that would wind up doing is continuing to present a shadow over the defense department and for that matter, the rest of government. >> the defense department is already planning to reduce its budget by about $500 billion over the coming ten years. panetta has voiced concern that further cuts could undermine barack obama's new defense strategy that lays more emphasis on the asia pacific region. >>> japanese officials are scratching their heads about how to deal with sluggish trade. sales to foreign countries have plunged leaving japan in a trade deficit for the fourth straight month. finance ministry officials released preliminary figures shortly before the markets opened. the deficit came in at $6.7 billion. exports fell by 6.5% from a year earlier. exports have fallen five months in a

consumer giving the economy a big lift or will fears about the fiscal cliff get in the way? a roundtable discussion is up next. you saw sears and kmart president kick off the open at the nasdaq. can his store ring up strong sales this holiday season? we'll head to break and look at this morning's early movers on wall street led by best buy up 1.6%. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so

the modern economy, you'll hear something like the following phrase. well, the last 30 years of the american political economy has been very good for consumers, but bad for workers. well, it's not like there's two parts of me. it's just the same person who is doing both of those things. the question is in total, are you better off. and jennifer is someone who runs a small business and is in the world of retail. i want to hear what your thoughts on all of this right after we take this quick break. >>> that's the video of the walmart in georgia on black friday that we were debating whether we wanted to show. so we thought -- >> we say voyeurism -- >> well, no, we said we're only going to show it if we unpack a little bit rather than just kind of throw it out and look at those crazy people. jessica, not jennifer. we're 14 minutes into the show, i got one person who wasn't arrested saying was arrested. what was your take away from the walmart action? >> i honestly think it's inspiring. we were talking about this a moment ago. i think like the occupy movement, even if it's a sort of a symbolic mo

? >> it's a very bifurcated economy today with the consumer. you have high end consumers that are still feeling pretty good but in very basic every day needs like food as well as basic services, et cetera, people no matter what economic strata they're in, they are trying to save on those basics. >> explains a lot about where we are. >> took my breath away. what he's saying is there's a huge percentage of people trying to pay for dinner and dinner is tough to come by and you forget about that on a fiscal cliff discussion that will be even more difficult for people to pay for dinner and he did this acquisition because he knows people are hurting in this country. >> there's the opening bell. s&p at the top of your screen. here's big board at that. prosperity bank shares marking transfer from the nasdaq and over at the nasdaq. >> you're talking about dinner. we are having discussion about whole foods under pressure of late. the company missed. the cfo resigned. never a good thing for a company when you hear a cfo resigning. stock down 18.25%. smaller cap company. it's 2.9 billion. decent ac

travel is still popular even though the economy is sluggish. in terms of the tickets themselves yes they are up from earlier this month. if you're afraid of the big jumps we are still a holiday away from that. have a listen. >> over thanksgiving prices were relatively flat compared to thanksgiving 2011. where we do see a little bit of a jump is when we get to christmas. we see airfare prices 8% higher than we saw last christmas. >> maybe it's a big headache for folks that are traveling today is the number of canceled and delayed flights because of fog in the chicago area. it really impaired midway and owe hair. it's a domino system. a lot of the regional flights, everything you see up here in yellow is at least delayed. a lot of the canceled flights are from the midwest, springfield, missouri, and other points in the midwest. make sure you check with your airline if you're traveling today. heather: that is a lot of yellow on the screen. folks were waiving to you in the line, they didn't look some aggravated. hatch of the thanksgiving travelers will go by car instead. what is the imp

that central bankers can't rescue the u.s. economy if it goes over the fiscal cliff. paul is president of financial capital. given that we're talking about this so much with these guys not around, all we do is we keep showing how much time we have as it's ticking down. when they do get back, paul, how do you think that the deal looks if they do put one together, and do they get it done? >> good morning, and happy thanksgiving to y'all. we all know it's getting done, whether it gets done before christmas or in january, a deal's going to get done. i think also everyone knows taxes are unfortunately -- taxes are going to go up. i don't know it's going to be at the 250 level. maybe at the 500 or million-dollar level. but taxes are going to go up and expenses are going to get cut. so we all wish they would stop the jawboning and positioning and politicking, sit in a room with dulls, both give in a little bit and move on. but they're going to push and push and push and the markets will push a deal to get it done. >> so if you were trying to decide what to do, would you just stand pat with eq

for the workplace. we are not going to be the world's most innovative economy. second, in some ways, more surprising for me, it was brought to us by the former chief of secretary of the army, who talked about the problems in our education system and the relationship to the armed forces. the inability of some 70% of americans actually qualified for service in the armed forces ought to be a red flag for anyone. now, yes, there are other reasons for that. incarceration, obesity, but a fair amount of it is that the people can't pass the basic skills test to get into the military. so just imagine a country -- a developed country, a powerful country in the world. and we can't get the basic tasks. analyzing data secretary of state is realizing how few people how -- how they learn foreign languages, the fact that we don't have people who are prepared to go into the intelligence agency and we are lobbying ourselves appellate in literally the national security infrastructure of the country. so most importantly, it is a tragedy that people will not be prepared for a good job and will therefore have nowhere els

as the eu and imf agree on terms of debt sustainability. where does it leave the greek economy which has already shrunk by nearly a fifth? >>> and warren buffett on tv this morning saying he wouldn't sell a single share of stock even if he was guaranteed the u.s. goes off the fiscal cliff. just wait until you hear who he thinks should be the treasury secretary. >> we'll begin of course with the deal of the day. conagra foods has agreed to acquire ralcorp for $5 billion. $90 a share in cash. 28% premium to the closing price on monday. kayla tausche reported on potential for a deal between the two companies back in 2011. it creates the largest private label food company in north america. this is a big deal. >> yes, it is. it's big in size in terms of what we've seen in this market. look how excited he is. and they finally got it done. it's been one as you pointed out that was around in 2011. they couldn't get it done. that is conagra. they walked away. ralcorp stock price fell dramatically. they split the post cereal division from ralcorp. the two trade separately. so you did have a compan

of the u.s. economy. james has the latest on the planned walmart workers strike but, first, live from chicago. steve, hour the so-called brick and mortar stores versus online retailers? >>reporter: the overall retail picture looks like this, the national federations of retailers believes there will be a 4 percent increase in holiday spending this year over last year. in terms of the brick and mortar physical stores there was a movement away from some of the these just because of the size of the crowds. some folks cannot go out and battle the crowds but we have seen a return of folks who swore off the early bird shopping. >> i was going to go online and do my shopping from there but it worked out. >>reporter: there are a lot of folks that do online shopping and that is growing. one estimate is in holiday online shopping will be up 17 percent and 4 percent overall. >>gregg: the people working the stores. any trouble finding or keeping workers there? >>reporter: they have to go weeks and months to get folks prepared. we stopped in with a target in chicago area and they have worked on hav

are not spread across the board. the economy would take a hit of $500 billion, probably sending the country back boo recession. i get what the white house is saying and what people like patty murray are saying about how we should negotiate this and whether it's a cliff or a slope. >> it's a financial cliff claven. >> slope. >> i think even if it is a slope, if we go over the fiscal slope, it will do a lot of damage. >> right it could -- the markets will react, freak out. >> that's where the damage will be done. >> i love politico, a growing block of emboldened emboldened liberals. [ screaming ] >> say they're not afraid to watch defense spending get gouged. [ scream ] >> stephanie: if republicans captain see their way toward additional revenues then we're better off going over the cliff and readdressing this with a better congress in january. >> it's the republicans holding the country hostage. >> they're saying it's more of a slope where the economic effects will be handled gradually. we're going to have a whole new congress. >> more democrats. >> we have the technology. we can make them better

president obama's deep cuts will have a deep effect to our economy. he used the word dwast stating. snowing this how could anyone support depleting another $1.8 billion from an already stretched budget? president obama's climate chief defended the green fleet by arguing even a dollar rise in gasoline prices would cost d.o.d. $30 billion. believe my good friend, the senator from colorado said essentially the same thing. i agree with that. if every $1 rise in gas prices cost $30 million, a $27 increase would add up to about $660 million so that argument falls completely flat in realizing the economic angle is a political hoozer the obama administration has tried to say it's about national security in getting off of foreign oil. that's where i want to get. i spent several years as chairman of the environment and public works committee and several years as the ranking member. all during that time people keep saying the one thing we all agree on is we need to be off of foreign oil. we need not to be dependent upon the middle east. and yet right now we know and no one is going to refute this fact

of something, you reduce taxes on it. if you want less of something, you tax it more. in our economy right now, with a lot of money sitting idle on the sidelines, and a lot of people unemployed, the last thing we want to do is, you know, increase taxes on investments which will, therefore, result in less investments and less jobs. >> tom: we have more with lew hay tomorrow on our thanksgiving special, "looking at the fiscal cliff." >> susie: the thanksgiving holiday marks one of the busiest travel times of the year, and airlines are expected to have a blockbuster weekend. they could use it. the airlines have struggled to find profits over the past decade. sylvia hall reports. >> reporter: it's one of the busiest days of the year for airlines, as people jet across the country to and from their holiday destinations. the airlines expect to fill a total of 24 million seats between today and sunday, according to airlines for america. that's an average of 2.5 million seats filled each day, up by a quarter of a million from last year. >> this year so far, the average profit point for every passenger

. >>> we turn to the economy now, and some good news tonight for americans and their 401(k)s heading into thanksgiving. wall street ended the shortened holiday trading week on a two-week high, in fact. the dow closing at nearly 13,000. the fourth day of gains now, helped by that truce in the middle east this afternoon. wall street now hoping shoppers will provide the next boost to the economy, black friday now approaching. >>> there is still much more ahead on "world news" this wednesday night. on this night of travel in america, we take you inside the airplane of the future. a jet that erases jet lag? two years ago, the people of bp made a commitment to the gulf. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. i have a cold, and i to

of failure. >> pelley: if we go over the fiscal cliff, as it's called, what happens to the economy? >> look, if we go over the fiscal cliff, it will be very bad, hugely negative for the stock market, which is a source of people's wealth. people will feel poorer. if we go over for a short period of time and adjust it, we can repair some of those things. but what you won't repair is people's attitudes towards the united states as a responsible debtor. and that's very important. if we show that we're so irresponsible that we can't manage our affairs, people have no recourse but to invest with us today but they're going to work awfully hard to find alternatives very quickly. >> pelley: lloyd blankfein is among the world's most influential bankers, but he rarely does interviews. goldman sachs is the most successful investment bank on wall street with earnings last year of $4.4 billion. washington playing with fire? >> yes. yes. washington is playing with fire, and you don't get-- it's not like a football game where you get the two-minute warning. they don't-- you know, they don't tell you when y

of the economy and threatens our children's future. as a mother of young children this is a condition stant worry as is the cost of the gas and. and yet today we will pray for those less fortunate and we'll think of servicemembers away from home and give thanks for them and their families. and our hearts will go out to the families still without power after hurricane sandy and wilelook ahead to the holidays and new year and that same service of optimism that brings us together today should inspire us all year round and why here in washington dc republicans reached out to president obama in the hope to help our economy grow and solve the debt that threatens our children's future. >> if a deal is not reached on the fiscal cliff tax cuts will expire on january 1st. back to black friday. unfortunately fights already breaking out. this was the scene in indianapolis a few hours ago. police were called in to break up fights. shoppers waited in line to receive vouchers for plasma tvs and learned that some of the people were selling vouchers for profit. and right now, we are going to go with waga who is l

economy at the most important time of the year for retail stores. as the president uses similar scare tactics to bully republicans into a deal press secretary jay carney today made clear where the president himself simply refuses to compromise. >> there are issues that need to be resolved that we have been very clear about, both the presence interest and willingness to compromise, but also his clear insistence that he will not sign an extension of bush era tax cuts for the top 2% lou: a congressional budget office analysis shows that allowing the bush tax cuts to expire on upper income americans would generate approximately $82 billion a year or enough to run the government for eight and a half days. eight and a half days. meanwhile, the list of republicans who are reversing themselves on their anti-tax pledges is growing. former gang of six member publicly broke ranks last week after fellow gang member defected from norquist in july when he agreed to a tax increases in exchange for a grand bargain on the deficit. the other republicaa gang member, senator mike ray powell reportedly in

by $600 billion, the largest one-year reduction in history but will throw the economy back into a recession. unemployment will go from 7.9% currently to over 9%. i don't think that's going to happen. i do think we'll go over the cliff, not have a deal before it happens. i think it will be fixed shortly after this -- after they storm the castle with pitch forks and torches but this is potentially the worst fiscal policy since the end of the great depression when we went into an austerity program too early and threw the economy back into a recession back in the '30s. so this is serious stuff. but notice everything we just talked about the meetings each one is having. notice who's not having a meeting. the president is not having a meeting with john boehner. the congressional leaders aren't coming to the white house. there will be no direct negotiations this week. there's not -- if there is going to be a deal here, it won't be done until the middle to the end of december. all of this so far is just kabuki theat

. will this be a much-needed jolt for the economy. >>> we're going to dig into the numbers this morning. >>> and speaking of money. powerball fever, overloading machines, causing them to break down. we have the latest on the multimillion-dollar jackpot. and tips from a seven-time winner. seriously, he's won seven times. >> i'll be taking notes. >> pick the right numbers. back to you. >> he's on a roll. >>> i have to focus here. this is important. turning heads this morning, anna nicole smith's 6-year-old daughter, dannielynn, following in her mother's footsteps, modeling for guess. we'll hear from her and her dad. >> she looks exactly like anna nicole smith. >> and he looks tired. thank you for getting up with us. >>> we're going to keep you up, though. they're here, the muppets, live. i hear they're taking over the control room. >> on the right side. not the left side. the right side. my left side is pretty good. >> they always take over the control room. >>> first, let's get to sam and the snow making for a nuisance in the rush hour. >> it is a nuisance snow. some folks won't get the

around. >> okay. >> what else do we have in news? >> we have the economy. we'll begin there now at 4 past the hour. >> we're going to keep reading the post. go ahead. >> the markets look to rebound after stocks finished relatively flat yesterday following a new warning from the central bank about the fiscal cliff. speaking to the economic club of new york, fed chair ben bernanke urged lawmakers to reach a deal to avoid the automatic spending cuts and tax increases. he said going over the fiscal cliff would pose a substantial risk to the economy. according to a new study the fiscal cliff could give 90% of americans new tax bills when the bush tax rates and some by president obama would both end. the working poor would be among the hardest hit. a tax policy center analysis showed a married couple making about $30,000 a year would on average go from receiving a $15 tax credit to owing $1400. >> wow. >> yeah. that's probably a reason to try and get something done? >> maybe we will. maybe we will. >> you would think. >> yeah. or maybe we can just talk about 2016. >> we could do that as well. h

people are flying. another reason is because of the economy, some people are saying i'm going to hold off in terms of booking a flight especially because fares are not dropping. because there's limited capacity. the airlines have been able to hold fares at a fairly consistent level. they are down according to aa compared to last year. still, you won't find too many bargains unless you're looking for last minute deals to nontraditional places. one other thing, guys, as we take a look at rental car stocks, you've heard a lot of stories over the last couple of days. it's true. if you were looking to rent a car in the northeastern united states, which some people do during the holiday weekend, good luck because most of them are already spoken for. this is the carryover effect from superstorm sandy. so many cars were damaged, destroyed during the storm. as a result, rental cars have been tight for some time in the northeastern united states. and that's the case this weekend. a lot of people, believe it or not, guys, they do like to rent a car in order to make the trip of 300 or 400 miles. this

." >> a new holiday spending bonanza. americans are feeling more confident about our economy. will lead to the great of growth, and what could set us back? >> also, an arrest in a string of murders in new york city connected to one gunman. what we are learning about the man that police in new york city say was poised to strike again. and a large bird crashes through the cockpit plane of this airport. details of the scare in the air for the pilot and passengers. it's all "happening now." >> but first, the cease-fire truce may be fragile, but it appeals to be holding. i am heather childers in for jenna lee. >> and i am rick scott in for jon scott. with egypt's president mohammed morsi, it is a big test for the new leader. steve harrigan is live in cairo. some are saying that mohammed morsi is the real winner here. you have all sides facing the same person. americans giving him high marks for his mediation, even some israeli officials praising the president. as far as the mediation goes, there were some concerns about which direction he would say, a long-term member of the muslim brotherho

for the overall health of the economy. but first, mass protests are erupting in egypt after a sudden power grab. in cairo's tahrir square, thousands are chanting for regime change. they say egypt's new president is acting like a dictator. president mohamed morsi granted himself sweeping new powers yesterday, basically morsi now has absolute power for six months. his opponents say he's acting like a new pharaoh. the u.s. state department is calling for calm and encouraging all parties to work together. morsi declared all his laws, all his decrees are final and cannot be overturned or appealed until egypt's new constitution is put in place. just days ago, people around the world were praising morsi for his pivotal role in negotiating the israel/hamas cease-fire. today, protesters set fire to a symbol of morsi's power, the muslim brotherhood headquarters in alexandria, egypt. morsi supporters clashed with protesters there. morsi is defending his new powers, saying he's not taking sides and the steps he took are meant to achieve political and social stability. reza sayah joins us live in cairo. rez

's thanksgiving pallad. we will show share how it happened. >> steve: want to see where our economy is going. look back to 1937 and franklin roosevelt and stewart varney will explain how history could repeat himself as he enters studio e. good morning to you, stewart. ♪ ♪ ♪ and feel like a green giant. ♪ ho ho ho ♪ green giant with thermacare heatwraps. thermacare works differently. it's the only wrap with patented heat cells that penetrate deep to relax, soothe, and unlock tight muscles. for up to 16 hours of relief, try thermacare. now we need a little bit more... [ male announcer ] at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the difference that quality time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other health professionals who helped us achieve the highest average star rating among national medicare companies... and become the first and only national medicare

us a lot about the state of the consumer and the u.s. economy today. so we're turning to one of the most seasoned and respected voices on wall street for help. we have dana telsey. she is our guest host for the next three hours. andrew, i'll send it over to you. >> we begin with a visit to toyland and here is toys r us. it opened its doors at 8:00 last night. and we have toys r us ceo joining us right now from the company's flagship store in times square. good morning. >> good morning. >> so i read a report you you had a big line. what's it been like all evening? >> it's been great. we did have a big line. we're at 44th and broadway.line went all the the way to 45th street and then down 45th all the way to 6th avenue. it was huge. people came in in a real celebratory mood. people ate ice cream, relaxed with their kids. i've never seen a black friday like this before, but 8:00 hour worked really well for families. >> let's talk about sales. how did it go overnight? >> we're just starting. this is 5:00 a.m. on black friday morning. we're really just starting. we have about a b.

, but it would also compromise our economy. >> and, quickly, there's a lot of speculation about what type of deal, what the deal will actually look like, talks perhaps coming to an agreement to have a mechanism in place that would have sizable deficit reduction and have sizable entitlement reform in 2013, a little bit now, a lot later. do you think it's possible in the lame duck to do a big deal or get a blueprint in place by january 1st? >> well, my best guess is, and it's just a guess, is that we have a blueprint and that we do make some changes. but that a commitment is made, not something as extreme as the sequester but a commitment is made for tax reform and other reforms that take place in 2013, but that we do enough to get us through the end of the year. i don't think it will be a completely kicking the can down the road because we can't because as my good friend from vermont says, you know, everybody's taxes will go up. i can't see that happen. i really can't. >> representative karen bass from l.a. laker land, thanks so much for waking up early for us. happy thanksgiving. >> thanks for ha

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